RUTH SUNDERLAND: New Year brings new bosses

Anyone who doubts the impact a new leader can have on a company need look no further than Rolls-Royce.

Tufan Erginbilgic took over as CEO of the aircraft engine manufacturer on New Year's Day 2023.

In the 12 months that followed, he convinced the City that he could succeed where his predecessors failed and make Rolls great again.

He spoke to my colleague Francesca Washtell about his strategy in an exclusive interview in the Mail on Sunday tomorrow.

Rolls shares will triple in value by 2023. Whether that performance holds up in the long term remains to be seen.

But no one can deny that Turbo Tufan has had a phenomenal start.

At M&S, another big British name, Stuart Machin and Archie Norman, the CEO and chairman respectively, appear to have brought about real improvement after two decades of false dawn.

It may be unfair to only recognize these individuals over predecessors who put in a lot of hard work, some of which only bore fruit after they left.

But with the best bosses there is an indefinable charisma factor that inspires others to believe in their vision. This can make them very difficult actions to follow.

Antonio Simoes, former banking director at HSBC and Santander, will take over at Legal & General on New Year's Day from Sir Nigel Wilson, who has become virtually synonymous with the insurer.

Wilson's philosophy of “inclusive capitalism” has been compelling, and Simoes has pledged to continue it.

He faces a number of strategic challenges. L&G is a major player in pension risk transfer, effectively taking on pension liabilities from UK employers.

The company struck a £4.8bn deal with Boots pension fund in November, the largest of its kind to date.

But sooner or later that lucrative stream will dry up. The shares, which performed well during Wilson's reign, have tanked in recent years, and Simoes needs to find a new source of growth.

NatWest and BP lost their CEOs last year due to unfortunate circumstances and have interim bosses.

Permanent appointments in post-scandal scenarios are usually motivated by the desire to prevent recurrence. That may or may not be the best route to growth.

The most dramatic change in leadership – if and when it happens – will occur at JP Morgan.

Jamie Dimon, 67, has spent the past 18 years running the Wall Street bank and its massive balance sheet, currently just under $4 trillion (£3.1 trillion).

The board awarded him performance-related incentives worth an estimated $50m (£39.2m) in 2021 to stay for another five years.

Despite his poor health, he seems in no hurry to step aside.

In a difficult year for most banks, shares will rise by more than 25 percent in 2023.

Following the playbook of the financial crisis when it bailed out ailing operators, JP Morgan incorporated First Republic into the Silicon Valley Bank crisis.

The bank so far appears to be putting the scandal aside. A $290 million (£227 million) settlement with Jeffrey Epstein's victims did nothing to stop the juggernaut.

Even the most powerful CEOs can stumble and fall, but we could all use a little of what Dimon has experienced.

house pride

The widespread fears – or, in some quarters, hopes – of a housing market collapse in 2023 have not materialized.

The latest figures from Nationwide show that prices will have fallen by 1.8 percent in 2023. Given the backdrop of rising interest rates and a cost-of-living crisis, that's quite resilient.

The idea of ​​a repeat of the housing market catastrophe of the late 1980s and early 1990s seems remote at this point.

The 100 percent-plus mortgages offered at the time have been replaced by affordability checks and requirements for large deposits.

A high percentage own their homes outright, which supports the market. Nationwide notes that the number of cash transactions is above pre-pandemic levels.

However, none of this has done much to make real estate more affordable.

A starter with an average income and a 20 percent down payment would have to give up almost 40 percent of the net salary in monthly mortgage payments. Ouch!

Assuming they can make a down payment, usually more than a year's gross income. The coming year will be another busy one for the Bank of Mum and Dad – for those who have access.